ap7am logo
Logo Bar bseindia nse-india msn yahoo youtube facebook google thehindu bbc ndtv v6 ABN NTv Tv9 Etv namasthetelangaana sakshi andhrajyothy eenadu ap7am bhakti espncricinfo wikipedia twitter

Why gold...when there is a golden 'bond'

Sat, Oct 28, 2017, 12:55 PM
Related Image


Indians love and cherish gold. Irrespective of religion or caste, it is a must for every household to possess some gold .There is no one who would not like to wear gold in the form of ornaments. That is why there is so much demand for gold, in our country. There has never been a situation where the demand for gold has waned. Gold is preferred not just in the form of ornaments, but also as an investment. Indian Government has introduced Sarvabhauma Gold Bonds specially for such investors.

Some 300 tonnes of gold is being sold in the country, annually. All this is being imported from abroad. The Centre aims to reduce these imports. It has introduced this plan, to divert the investments on solid gold, to that of gold bonds. Reserve Bank of India (RBI) is releasing the scheme, on behalf of the Centre. These bonds are authenticated by Indian Government. This chance is only for Indians living here, and not for Non-Resident Indians (NRIs). A person, can buy a minimum of one gram of gold and a maximum of 500 gm of gold, in a year. Bonds are available as demat accounts or certified on paper.

representational imageGold bonds are available annually, only on certain days. Up till now, government has completed issuing eight rounds of gold bonds. It is making these bonds available, not at all times, but a few times in a year. The bonds are priced as per the market rate of gold, at the time of issue of the bonds. Gold bonds can be bought from commercial banks, Non-Banking Financial Corporation (NBFC) agencies and post offices. These bonds are available even with stock brokers. They are available online with banks and financial agencies. The term of bonds is eight years. At the end of five, six or seven years, there is a chance of withdrawing the investments. These bonds are traded in stock exchanges. They are sold and bought here. Because they are in demat form, if you need money urgently, you can sell them to others, by just transferring the bonds to their accounts. The bonds remain in demat form.

Advantages
These bonds can be used as guarantee against loans. So you can take loans against them in an emergency. The rules set for gold loans, apply to loans against gold bonds. For those investing in gold, bonds are better than physical gold, experts suggest. The returns earned over the capital investments in these bonds, are not taxed. If you buy gold in the form of ornaments or biscuits, you need to protect them carefully. There is no safety at home. You need to rent a bank locker. But if you buy bonds, these kind of inconveniences can be avoided.

representational imageIf gold prices increase, after buying the bonds, the difference in amount is paid. Also, an interest of 2.7 per cent is paid once in six months, over the amount invested in these bonds. Bonds can be bought not just by one individual, but by several people, jointly. These bonds can be given as a gift to others. It can also be transferred to others. Many modes of payment like cash, cheques, DDs or electronic exchange, are available to own these bonds. However, for cash payment, the amount to be invested is limited to Rs. 20,000. They can be taken in the name of children, under the supervision of a guardian or parents.

KYC documents
Know Your Customer (KYC) details are a must for taking gold bonds. Aadhar Card and Pan Card are enough to show as proof.

Risk Factor
Centre certifies the investments as well as interests in these bonds. But gold rates depend on the market situation. If gold rates fall internationally, the value of bonds declines. Each investor should buy at least two gm worth of gold bonds.
X

Feedback Form

I agree to Terms of Service & Privacy Policy
Watch: Daggubati Suresh Babu On Personal Problems & Ca..
Watch: Daggubati Suresh Babu On Personal Problems & Casting Couch
Debate: TDP Vs BJP over Kadapa Steel Factory; Special Pack..
Debate: TDP Vs BJP over Kadapa Steel Factory; Special Package Vs Special Status
D Suresh Babu Special Interview; Comments On S*x Racket In..
D Suresh Babu Special Interview; Comments On S*x Racket In US
Bigg Boss 2- Nandini Rai's Mother Reaction On Daughter's E..
Bigg Boss 2- Nandini Rai's Mother Reaction On Daughter's Entry
The scrap of paper that exposed the America S*x Racket!..
The scrap of paper that exposed the America S*x Racket!
Ex JD Lakshmi Narayana Comments on Pawan Kalyan..
Ex JD Lakshmi Narayana Comments on Pawan Kalyan
Groom beaten up, bride taken away in Nizamabad (visuals)..
Groom beaten up, bride taken away in Nizamabad (visuals)
Suresh Babu clarifies about actor Rana's health..
Suresh Babu clarifies about actor Rana's health
Mani Sharma comments on Chiranjeevi Dance- Open Heart with..
Mani Sharma comments on Chiranjeevi Dance- Open Heart with RK
Girl jumps off hostel building in Hyderabad..
Girl jumps off hostel building in Hyderabad
Old City tiffin centre owner beats up customers seriously..
Old City tiffin centre owner beats up customers seriously
For NITI Aayog, AP capital Velagapudi is in Hyderabad..
For NITI Aayog, AP capital Velagapudi is in Hyderabad
Debate : Why Minister Ganta Discontent on TDP?..
Debate : Why Minister Ganta Discontent on TDP?
Minister Ganta skips cabinet meet, doubts arise..
Minister Ganta skips cabinet meet, doubts arise
Ramdev tells how to fight Diabetes, Age with Yoga Asanas..
Ramdev tells how to fight Diabetes, Age with Yoga Asanas
AP Govt writes against TS' Kaleshwaram project..
AP Govt writes against TS' Kaleshwaram project
Handshake: BJP Vishnu Kumar Raju shoulders AP CM..
Handshake: BJP Vishnu Kumar Raju shoulders AP CM
Who is the man in Anushka's litter video?..
Who is the man in Anushka's litter video?
Polavaram Project Latest Visuals and Review by Chandrabab..
Polavaram Project Latest Visuals and Review by Chandrababu
America S*x Racket: Ramki takes on Devi in Live Debate..
America S*x Racket: Ramki takes on Devi in Live Debate